REPRESENTATIVES Flowers, Clancy

To amend sections 122.011, 135.12, 135.143, 135.63,

1

135.631, 3770.06, and 5739.18, to enact new

2

sections 135.81, 135.82, 135.83, 135.84, 135.85,

3

135.86, and 135.87, and to repeal sections 135.81,

4

135.82, 135.83, 135.84, 135.85, 135.86, 135.87, and

5

135.88 of the Revised Code to expand the investment

6

authority of the Treasurer of State under the

7

Uniform Depository Act; to modify the authority of

8

the State Board of Deposit to designate public

9

depositories; to increase the amount that may be

10

invested in agricultural linked deposits; to

11

authorize the Treasurer of State to establish and

12

maintain a housing linked deposit program and to

13

partner with a municipal corporation or county that

14

has established a housing linked deposit program;

15

to eliminate the Depressed Economic Area Linked

16

Deposit Program; and to modify licensed vendor

17

reporting requirements of a county auditor.

18

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 122.011, 135.12, 135.143, 135.63,	19
135.631, 3770.06, and 5739.18 be amended and new sections 135.81,	20
135.82, 135.83, 135.84, 135.85, 135.86, and 135.87 of the Revised	21
Code be enacted to read as follows:	22

Sec. 122.011.  (A) The department of development shall	23
develop and promote plans and programs designed to assure that	24
state resources are efficiently used, economic growth is properly	25
balanced, community growth is developed in an orderly manner, and	26
local governments are coordinated with each other and the state,	27
and for such purposes may do all of the following:	28

(1) Serve as a clearinghouse for information, data, and	29
other materials that may be helpful or necessary to persons or	30
local governments, as provided in section 122.07 of the Revised	31
Code;	32

(2) Prepare and activate plans for the retention,	33
development, expansion, and use of the resources and commerce of	34
the state, as provided in section 122.04 of the Revised Code;	35

(3) Assist and cooperate with federal, state, and local	36
governments and agencies of federal, state, and local governments	37
in the coordination of programs to carry out the functions and	38
duties of the department;	39

(4) Encourage and foster research and development	40
activities, conduct studies related to the solution of community	41
problems, and develop recommendations for administrative or	42
legislative actions, as provided in section 122.03 of the Revised	43
Code;	44

(5) Serve as the economic and community development planning	45
agency, which shall prepare and recommend plans and programs for	46
the orderly growth and development of this state and which shall	47
provide planning assistance, as provided in section 122.06 of the	48
Revised Code;	49

(6) Cooperate with and provide technical assistance to state	50
departments, political subdivisions, regional and local planning	51
commissions, tourist associations, councils of government,	52
community development groups, community action agencies, and other	53
appropriate organizations for carrying out the functions and	54
duties of the department or for the solution of community	55
problems;	56

(7) Coordinate the activities of state agencies that have an	57
impact on carrying out the functions and duties of the department;	58

(8) Encourage and assist the efforts of and cooperate with	59
local governments to develop mutual and cooperative solutions to	60
their common problems that relate to carrying out the purposes of	61
this section;	62

(9) Study existing structure, operations, and financing of	63
regional or local government and those state activities that	64
involve significant relations with regional or local governmental	65
units, recommend to the governor and to the general assembly such	66
changes in these provisions and activities as will improve the	67
operations of regional or local government, and conduct other	68
studies of legal provisions that affect problems related to	69
carrying out the purposes of this section;	70

(10) Appoint, with the approval of the governor, technical	71
and other advisory councils as it considers appropriate, as	72
provided in section 122.09 of the Revised Code;	73

(11) Create and operate a division of community development	74
to develop and administer programs and activities that are	75
authorized by federal statute or the Revised Code;	76

(12) Until July 1, 2003, establish fees and charges, in	77
consultation with the director of agriculture, for purchasing	78
loans from financial institutions and providing loan guarantees	79
under the family farm loan program created under sections 901.80	80
to 901.83 of the Revised Code;	81

(13) Provide loan servicing for the loans purchased and loan	82
guarantees provided under section 901.80 of the Revised Code as	83
that section existed prior to July 1, 2003;	84

(14) Until July 1, 2003, and upon approval by the	85
controlling board under division (A)(3) of section 901.82 of the	86
Revised Code of the release of money to be used for purchasing a	87
loan or providing a loan guarantee, request the release of that	88
money in accordance with division (B) of section 166.03 of the	89
Revised Code for use for the purposes of the fund created by	90
section 166.031 of the Revised Code.	91

(B) The department, by rule, shall establish criteria	92
defining nonprofit corporations that are eligible for appointment	93
as qualified agents pursuant to sections 135.81 to 135.88 of the	94
Revised Code. The criteria shall require that a corporation be	95
organized pursuant to Chapter 1702. of the Revised Code and have	96
as its primary purpose the promotion of economic development or	97
the creation or retention of jobs and job opportunities. The	98
criteria may include a specification as to the professional	99
qualifications of the corporation employees, a minimum elapsed	100
period of time since the corporation was organized, current and	101
former activities of the corporation, and such other criteria	102
reasonably related to the foregoing that relate to the ability of	103
the corporation to act as a qualified agent for the purposes of	104
sections 135.81 to 135.88 of the Revised Code.	105

(C) The director of development may request the attorney	106
general to, and the attorney general, in accordance with section	107
109.02 of the Revised Code, shall bring a civil action in any	108
court of competent jurisdiction. The director may be sued in the	109
director's official capacity, in connection with this chapter, in	110
accordance with Chapter 2743. of the Revised Code.	111

Sec. 135.12.  (A) Beginning in 20002004, the state board of	112
deposit shall meet on the third Monday of JuneMarch in the	113
even-numbered years for the purpose of designating the public	114
depositories of the public moneys of the state, and at such	115
meeting or any adjourned session thereof shall designate such	116
public depositories and award the public moneys of the state to	117
and among the public depositories so designated for the period of	118
two years commencing on the first Monday of July next following.	119

(B) Each governing board other than the state board of	120
deposit shall meet every five years on the third Monday or such	121
regularly scheduled meeting date of the month next preceding the	122
date of the expiration of its designation of depositories for the	123
purpose of designating the public depositories of the public	124
moneys of the subdivision, and at such meeting or any adjourned	125
session thereof, shall designate such public depositories and	126
award the public moneys of the subdivision to and among the public	127
depositories so designated for the period of five years commencing	128
on the date of the expiration of the next preceding designation.	129
The designation and award shall be made in duplicate; one copy	130
shall be retained by the governing board of the subdivision and	131
one copy shall be certified to the treasurer.	132

(C) If a governing board other than the state board of	133
deposit determines, during a designation period, that a public	134
depository designated under this section is insolvent or operating	135
in an unsound or unsafe manner, the governing board may meet and	136
designate a different public depository of the public moneys of	137
the state or of the subdivision for the remainder of the	138
designation period.	139

(D) If a governing board other than the state board of	140
deposit determines during a designation period that it is	141
necessary and in the state's or subdivision's best interests to	142
appoint additional depositories, the governing board may meet and	143
designate one or more additional public depositories of the public	144
moneys of the state or of the subdivision for the remainder of the	145
designation period.	146

(E) Whenever, by amendment or enactment of any state or	147
federal law or the amendment or adoption of any valid regulation	148
thereunder, the terms of a designation or award, lawful at the	149
beginning of any designation period, cease to be lawful during	150
such period, and if the change of law or regulation requires, the	151
designation period shall be limited so as not to extend beyond the	152
date when that change becomes effective. In such case, the proper	153
governing board shall meet and designate the public depositories	154
of the public moneys of the state or of the subdivision for the	155
remainder of the designation period.	156

Sec. 135.143.  (A) The treasurer of state may invest or	157
execute transactions for any part or all of the interim funds of	158
the state in the following classifications of obligations:	159

(1) United States treasury bills, notes, bonds, or any other	160
obligations or securities issued by the United States treasury or	161
any other obligation guaranteed as to principal and interest by	162
the United States;	163

(2) Bonds, notes, debentures, or any other obligations or	164
securities issued by any federal government agency or	165
instrumentality;	166

(3) Bonds and other direct obligations of the sinking fund	167
of the state of Ohio issued by the treasurer of state and of the	168
Ohio public facilities commission;	169

(4)(a) Written repurchase agreements with any eligible Ohio	170
financial institution that is a member of the federal reserve	171
system or federal home loan bank or any recognized United States	172
government securities dealer, under the terms of which agreement	173
the treasurer of state purchases and the eligible financial	174
institution or dealer agrees unconditionally to repurchase any of	175
the securities that are listed in division (A)(1) or, (2), or (6)	176
of this section and that will mature or are redeemable within ten	177
years from the date of purchase. The market value of securities	178
subject to these transactions must exceed the principal value of	179
the repurchase agreement by an amount specified by the treasurer	180
of state, and the securities must be delivered into the custody of	181
the treasurer of state or the qualified trustee or agent	182
designated by the treasurer of state. The agreement shall contain	183
the requirement that for each transaction pursuant to the	184
agreement, the participating institution or dealer shall provide	185
all of the following information:	186

(i) The par value of the securities;

187

(ii) The type, rate, and maturity date of the securities;

188

(iii) A numerical identifier generally accepted in the	189
securities industry that designates the securities.	190

(b) The treasurer of state also may sell any securities,	191
listed in division (A)(1) or, (2), or (6) of this section,	192
regardless of maturity or time of redemption of the securities,	193
under the same terms and conditions for repurchase, provided that	194
the securities have been fully paid for and are owned by the	195
treasurer of state at the time of the sale.	196

(5) Securities lending agreements with any eligible	197
financial institution that is a member of the federal reserve	198
system or federal home loan bank or any recognized United States	199
government securities dealer, under the terms of which agreement	200
agreements the treasurer of state lends securities and the	201
eligible financial institution or dealer agrees to simultaneously	202
exchange similar securities or cash, equal value for equal value.	203

Securities and cash received as collateral for a securities	204
lending agreement are not interim funds of the state. The	205
investment of cash collateral received pursuant to a securities	206
lending agreement may be invested only in such instruments	207
specified by the treasurer of state in accordance with a written	208
investment policy.	209

(6) Various forms of commercial paper issued by any	210
corporation that is incorporated under the laws of the United	211
States or a state, which such notes are rated at the time of	212
purchase in the two highest categories by two nationally	213
recognized rating agencies, provided that the total amount	214
invested under this section in any commercial paper at any time	215
shall not exceed fivetwenty-five per cent of the state's total	216
average portfolio, as determined and calculated by the treasurer	217
of state;	218

(7) Bankers acceptances, maturing in two hundred seventy	219
days or less, which are eligible for purchase by the federal	220
reserve system, provided that the total amount invested in bankers	221
acceptances at any time shall not exceed ten per cent of the	222
state's total average portfolio, as determined and calculated by	223
the treasurer of state;	224

(8) Certificates of deposit in eligible institutions	225
applying for interim moneys as provided in section 135.08 of the	226
Revised Code, including linked deposits as provided in sections	227
135.61 to 135.67 of the Revised Code, agricultural linked deposits	228
as provided in sections 135.71 to 135.76 of the Revised Code, and	229
depressed economic areahousing linked deposits as provided in	230
sections 135.81 to 135.88135.87 of the Revised Code;	231

(9) The state treasurer's investment pool authorized under	232
section 135.45 of the Revised Code;	233

(10) Debt interests, other than commercial paper described	234
in division (A)(6) of this section, rated investment gradeat the	235
time of purchase in the three highest categories by atwo	236
nationally recognized rating agencyagencies and issued by	237
corporations that are incorporated under the laws of the United	238
States or a state, or issued by foreign nations diplomatically	239
recognized by the United States government, or any instrument	240
based on, derived from, or related to such interests. All	241
interest and principal shall be denominated and payable in United	242
States funds. The investments made under division (A)(10) of this	243
section shall not exceed in the aggregate fivetwenty-five per	244
cent of the state's total average portfolio, as determined and	245
calculated by the treasurer of state. The investments made under	246
division (A)(10) of this section in debt interests issued by	247
foreign nations shall not exceed in the aggregate one per cent of	248
the state's total average portfolio, as determined and calculated	249
by the treasurer of state. The investments made under division	250
(A)(10) of this section in the debt interests of a single issuer	251
shall not exceed in the aggregate one-half of one per cent of the	252
state's total average portfolio, as determined and calculated by	253
the treasurer of state.	254

The treasurer of state shall invest under division (A)(10) of	255
this section in a debt interest issued by a foreign nation only if	256
the debt interest is backed by the full faith and credit of that	257
foreign nation. For purposes of division (A)(10) of this section,	258
a debt interest is rated investment gradein the three highest	259
categories by atwo nationally recognized rating agencyagencies	260
if either the debt interest itself or the issuer of the debt	261
interest is rated, or is implicitly rated, investment gradeat the	262
time of purchase in the three highest categories by atwo	263
nationally recognized rating agencyagencies.	264

(11) No-load money market mutual funds consisting	265
exclusively of obligations described in division (A)(1) or, (2),	266
or (6) of this section and repurchase agreements secured by such	267
obligations.	268

(12) Obligations of a board of education issued under	269
authority of section 133.10 or 133.301 of the Revised Code.	270

(B) Whenever, during a period of designation, the treasurer	271
of state classifies public moneys as interim moneys, the treasurer	272
of state shall notify the state board of deposit of such action.	273
SuchThe notification shall be given within thirty days after such	274
classification and, in the event the state board of deposit does	275
not concur in such classification or in the investments or	276
deposits made under this section, the board may order the	277
treasurer of state to sell or liquidate any of suchthe	278
investments or deposits, and any such order shall specifically	279
describe the investments or deposits and fix the date upon which	280
they are to be sold or liquidated. Investments or deposits so	281
ordered to be sold or liquidated shall be sold or liquidated for	282
cash by the treasurer of state on the date fixed in such order at	283
the then current market price. Neither the treasurer of state nor	284
the members of the state board of deposit shall be held	285
accountable for any loss occasioned by sales or liquidations of	286
investments or deposits at prices lower than their cost. Any loss	287
or expense incurred in making suchthese sales or liquidations is	288
payable as other expenses of the treasurer's office.	289

(C) If any securities or obligations invested in by the	290
treasurer of state pursuant to this section are registrable either	291
as to principal or interest, or both, such securities or	292
obligations shall be registered in the name of the treasurer of	293
state.	294

(D) The treasurer of state is responsible for the	295
safekeeping of all securities or obligations under this section.	296
Any such securities or obligations may be deposited for	297
safekeeping as provided in section 113.05 of the Revised Code.	298

(E) Interest earned on any investments or deposits	299
authorized by this section shall be collected by the treasurer of	300
state and credited by the treasurer of state to the proper fund of	301
the state.	302

(F) Whenever investments or deposits acquired under this	303
section mature and become due and payable, the treasurer of state	304
shall present them for payment according to their tenor, and shall	305
collect the moneys payable thereon. The moneys so collected shall	306
be treated as public moneys subject to sections 135.01 to 135.21	307
of the Revised Code.	308

(G) The treasurer of state and any board of education	309
issuing obligations referred to in division (A)(12) of this	310
section may enter into an agreement providing for:	311

(1) The purchase of those obligations by the treasurer of	312
state on terms and subject to conditions set forth in the	313
agreement;	314

(2) The payment by the board of education to the treasurer	315
of state of a reasonable fee as consideration for the agreement of	316
the treasurer of state to purchase those obligations; provided,	317
however, that the treasurer of state shall not be authorized to	318
enter into any such agreement with the board of education of a	319
school district that has an outstanding obligation with respect to	320
a loan received under authority of section 3313.483 of the Revised	321
Code.	322

(H) For purposes of division (G) of this section, a fee	323
shall not be considered reasonable unless it is set to recover	324
only the direct costs and a reasonable estimate of the indirect	325
costs associated with the purchasing of obligations of a school	326
board under division (G) of this section and any reselling of the	327
obligations or any interest in the obligations, including	328
interests in a fund comprised of the obligations. No money from	329
the general revenue fund shall be used to subsidize the purchase	330
or resale of these obligations.	331

(I) All money collected by the treasurer of state from the	332
fee imposed by division (G) of this section shall be deposited to	333
the credit of the state school board obligations fund, which is	334
hereby created in the state treasury. Money credited to the fund	335
shall be used solely to pay the treasurer of state's direct and	336
indirect costs associated with purchasing and reselling	337
obligations of a board of education under division (G) of this	338
section.	339

Sec. 135.63.  The treasurer of state may invest in linked	340
deposits under sections 135.61 to 135.67, agricultural linked	341
deposits under sections 135.71 to 135.76, housing linked deposits	342
under sections 135.81 to 135.87, and assistive technology device	343
linked deposits under sections 135.91 to 135.97 of the Revised	344
Code, provided that at the time of placement of any linked deposit	345
under sections 135.61 to 135.67 of the Revised Code, agricultural	346
linked deposit, housing linked deposit, or assistive technology	347
device linked depositsdeposit, the combined amount of investments	348
in the linked deposits, agricultural linked deposits, housing	349
linked deposits, and assistive technology device linked deposits	350
is not more than twelve per cent of the state's total average	351
investment portfolio as determined by the treasurer of state. When	352
deciding whether to invest in the linked deposits, agricultural	353
linked deposits, housing linked deposits, or assistive technology	354
device linked deposits, the treasurer of state shall give priority	355
to the investment, liquidity, and cash flow needs of the state.	356

Sec. 135.631.  The treasurer of state shall attempt to place	357
up to one hundred twenty-five million dollars of the amount	358
authorized to be invested under section 135.63 of the Revised Code	359
in agricultural linked deposits, as defined in section 135.71 of	360
the Revised Code, subject to the procedures set forth in sections	361
135.71 to 135.76 of the Revised Code.	362

Sec. 135.81. As used in sections 135.81 to 135.87 of the	363
Revised Code:	364

(A) "Eligible governmental subdivision" means a municipal	365
corporation or county in this state.	366

(B) "Eligible governmental subdivision housing linked deposit	367
program" means any program established pursuant to section 135.80	368
of the Revised Code by the legislative authority of a municipal	369
corporation or the board of county commissioners of a county, in	370
which the program goals address specific housing issues relative	371
to the geographic boundaries of that municipal corporation or	372
county. These program goals include, but are not limited to, home	373
improvement, home restoration, energy efficiency, retention of	374
historic significance, controlling urban sprawl, neighborhood	375
revitalization, affordable housing, home ownership for persons	376
unable to secure conventional financing, urban development, or	377
economic revitalization of a residential area as a result of a	378
natural disaster or other catastrophic occurrence.	379

(C) "Eligible housing linked deposit participant" means any	380
person or small business that meets the requirements set forth in	381
an eligible governmental subdivision housing linked deposit	382
program or set forth by the treasurer of state pursuant to	383
division (B)(2) of section 135.82 of the Revised Code and that is	384
a resident of this state.	385

(D) "Eligible lending institution" means a financial	386
institution meeting all of the following:	387

(1) It is eligible to make commercial loans or residential	388
loans.	389

(2) It is a public depository of state funds under section	390
135.03 of the Revised Code.	391

(3) It agrees to participate in a program to provide housing	392
linked deposits.	393

(E) "Housing linked deposit" means a certificate of deposit	394
or other financial institution instrument, described in section	395
135.85 of the Revised Code, placed by the treasurer of state with	396
an eligible lending institution, in accordance with division (B)	397
of section 135.84 of the Revised Code, provided that the	398
institution agrees, at the time of the deposit of state funds and	399
for the period of the deposit, to lend the value of the deposit	400
according to the deposit agreement described in section 135.85 of	401
the Revised Code to eligible housing linked deposit participants	402
at a fixed interest rate of three hundred basis points below the	403
present borrowing rate applicable to each participant in the	404
absence of approval to participate in the programs described in	405
division (B) of section 135.82 of the Revised Code.	406

(F) "Other financial institution instrument" means a fully	407
collateralized product that otherwise would pay market rates of	408
interest approved by the treasurer of state, for the purpose of	409
providing eligible housing linked deposit participants with the	410
benefits of a housing linked deposit.	411

Sec. 135.82. (A) The general assembly finds that there exists	412
in this state a lack of affordable financing options to promote	413
solutions to a number of housing issues including, but not limited	414
to, home improvement, home restoration, energy efficiency,	415
retention of historic significance, controlling urban sprawl,	416
neighborhood revitalization, affordable housing, home ownership	417
for persons unable to secure conventional financing, urban	418
development, and economic revitalization of a residential area as	419
a result of a natural disaster or other catastrophic occurrence.	420
Accordingly, it is declared to be the public policy of the state	421
through housing linked deposits to create an availability of lower	422
cost funds to inject needed capital into local residential	423
communities.	424

(B) Pursuant to the findings and declarations of division (A)	425
of this section and subject to the amount authorized to be	426
invested in linked deposits pursuant to sections 135.63 and	427
135.631 of the Revised Code, both of the following apply:	428

(1) Housing linked deposits are authorized under which the	429
state partners with eligible governmental subdivisions in	430
accordance with section 135.83 of the Revised Code to provide,	431
pursuant to section 135.84 of the Revised Code, an availability of	432
lower cost funds for lending purposes that materially will	433
contribute to the solutions addressing housing issues, described	434
in division (A) of this section, across the state.	435

(2) In the absence of an eligible governmental subdivision	436
linked deposit program, the treasurer of state may develop an	437
application process and procedures and eligibility requirements	438
for participation in a housing linked deposit program that	439
provides, pursuant to section 135.84 of the Revised Code, an	440
availability of lower cost funds for lending purposes that	441
materially will contribute to the solutions addressing housing	442
issues, described in division (A) of this section, across the	443
state.	444

Sec. 135.83. (A) An eligible governmental subdivision that	445
has established an eligible governmental subdivision housing	446
linked deposit program may apply to the treasurer of state for	447
consideration of the formation of a partnership with the treasurer	448
of state for the purpose of providing additional funding for that	449
eligible governmental subdivision housing linked deposit program.	450

(B) Both of the following apply to the application for the	451
formation of a partnership with the treasurer of state described	452
in division (A) of this section:	453

(1) The application made to the treasurer of state shall be	454
in the form and manner prescribed by the treasurer of state.	455

(2) The application shall include any information required by	456
the treasurer of state, including all of the following with	457
respect to the eligible governmental subdivision housing linked	458
deposit program:	459

(a) A copy of the eligible governmental subdivision's	460
application for participation in the program;	461

(b) Eligibility requirements for participation in the	462
eligible governmental subdivision program;	463

(c) The total eligible governmental subdivision deposit	464
commitment or allocation limits of the eligible governmental	465
subdivision in the program.	466

(C) The treasurer of state may accept or reject any	467
application for the formation of a partnership described in	468
division (B) of this section and submitted by an eligible	469
governmental subdivision to the treasurer of state for reasons	470
including, but not limited to, the cash flow needs of the state,	471
level of participation by any or all eligible governmental	472
subdivisions, and criteria set forth by the treasurer of state.	473

(D) If an eligible governmental subdivision has formed a	474
partnership with the treasurer of state pursuant to this section,	475
both of the following apply:	476

(1) The treasurer of state has final approval, in accordance	477
with division (A) of section 135.84 of the Revised Code, of any	478
application submitted by an applicant for participation in that	479
eligible governmental housing linked deposit program.	480

(2) The eligible governmental subdivision shall comply with	481
any monitoring requirements set forth by the treasurer of state.	482

Sec. 135.84. (A)(1) The treasurer of state may accept or	483
reject a housing linked deposit application submitted by an	484
applicant, or any portion thereof, based on the treasurer of	485
state's evaluation of the applicant and the amount of state funds	486
to be deposited.	487

(2) If applicable, when evaluating an application pursuant to	488
division (A)(1) of this section, the treasurer of state shall give	489
consideration to the criteria for acceptance or rejection of an	490
application set forth by an eligible governmental subdivision in	491
the eligible governmental subdivision housing linked deposit	492
program.	493

(3) No fee shall be charged to any party for the preparation,	494
processing, reporting, or monitoring of any application to the	495
treasurer of state for a housing linked deposit.	496

(B)(1) Upon acceptance of a housing linked deposit	497
application or any portion thereof, the treasurer of state may	498
place certificates of deposit or other financial institution	499
instruments described in section 135.85 of the Revised Code with	500
an eligible lending institution at up to three hundred basis	501
points below current market rates, as determined and calculated by	502
the treasurer of state.	503

(2) When necessary, the treasurer of state may place	504
certificates of deposit or other financial institution instruments	505
described in section 135.85 of the Revised Code with an eligible	506
lending institution prior to acceptance of a housing linked	507
deposit application.	508

Sec. 135.85. (A) Upon placement of a housing linked deposit	509
with an eligible lending institution pursuant to division (B) of	510
section 135.84 of the Revised Code, the eligible lending	511
institution shall do both of the following:	512

(1) Enter into a deposit agreement with the treasurer of	513
state that includes all of the following:	514

(a) Any requirements necessary to carry out the purposes of	515
sections 135.81 to 135.87 of the Revised Code;	516

(b) Provisions for any certificate of deposit or other	517
financial institution instrument meeting the requirements	518
described in division (B) of this section and placed for any	519
maturity considered appropriate by the treasurer of state but not	520
exceeding five years;	521

(c) A specification of the period of time in which the	522
eligible lending institution is to provide the reduced interest	523
rate to an approved applicant.	524

(2) Lend funds as provided in division (C) of this section	525
and in accordance with the deposit agreement described in this	526
section to each eligible housing linked deposit participant	527
approved by the treasurer of state pursuant to division (A) of	528
section 135.84 of the Revised Code.	529

(B) Both of the following apply to any certificate of deposit	530
or other financial institution instrument described in division	531
(A)(1)(b) of this section:	532

(1) The certificate of deposit or other financial institution	533
instrument shall not be renewed upon final maturity.	534

(2) Interest shall be paid at the times and in the manner	535
prescribed by the treasurer of state.	536

(C) The loan described in division (A)(2) of this section	537
shall be at a fixed rate of three hundred basis points below the	538
present borrowing rate that would apply to the eligible housing	539
linked deposit participant in the absence of approval to	540
participate in the programs described in division (B) of section	541
135.82 of the Revised Code.	542

(D) A certificate of compliance with this section in the form	543
and manner prescribed by the treasurer of state shall be provided	544
by the eligible lending institution.	545

(E)(1) Any delay in payments or default on the part of the	546
eligible housing linked deposit participant does not in any manner	547
affect the deposit agreement between the eligible lending	548
institution and the treasurer of state.	549

(2) If an eligible lending institution changes the terms of a	550
loan to an eligible housing linked deposit participant because of	551
a delay in payments or default, the housing linked deposit amount	552
shall be returned to the treasurer of state by the eligible	553
lending institution. In which case, the deposit amount plus	554
interest and without early withdrawal penalties shall be returned	555
in a timely manner as prescribed by the treasurer of state.	556

(F) An eligible lending institution shall comply fully with	557
sections 135.81 to 135.87 of the Revised Code.	558

Sec. 135.86. (A) The treasurer of state shall take any steps	559
necessary to monitor compliance with sections 135.81 to 135.87 of	560
the Revised Code by eligible lending institutions, eligible	561
housing linked deposit participants, and eligible governmental	562
subdivisions to which partnerships with the treasurer of state	563
have been approved pursuant to section 135.83 of the Revised Code.	564

(B) The treasurer of state may develop guidelines to carry	565
out the purposes of division (A) of this section.	566

Sec. 135.87. The state and the treasurer of state are not	567
liable to any eligible lending institution in any manner for	568
payment of principal or interest on a loan to an eligible housing	569
linked deposit participant under sections 135.81 to 135.87 of the	570
Revised Code.	571

Sec. 3770.06.  (A) There is hereby created the state lottery	572
gross revenue fund, which shall be in the custody of the treasurer	573
of state but shall not be part of the state treasury. All gross	574
revenues received from sales of lottery tickets, fines, fees, and	575
related proceeds in connection with the statewide lottery and all	576
gross proceeds from statewide joint lottery games shall be	577
deposited into the fund. The treasurer of state shall invest any	578
portion of the fund not needed for immediate use in the same	579
manner as, and subject to all provisions of law with respect to	580
the investment of, state funds. The treasurer of state shall	581
disburse money from the fund on order of the director of the state	582
lottery commission or the director's designee.	583

Except for gross proceeds from statewide joint lottery games,	584
all revenues of the state lottery gross revenue fund that are not	585
paid to holders of winning lottery tickets, that are not required	586
to meet short-term prize liabilities, that are not credited to	587
lottery sales agents in the form of bonuses, commissions, or	588
reimbursements, that are not paid to financial institutions to	589
reimburse those institutions for sales agent nonsufficient funds,	590
and that are collected from sales agents for remittance to	591
insurers under contract to provide sales agent bonding services	592
shall be transferred to the state lottery fund, which is hereby	593
created in the state treasury. In addition, all revenues of the	594
state lottery gross revenue fund that represent the gross proceeds	595
from the statewide joint lottery games and that are not paid to	596
holders of winning lottery tickets, that are not required to meet	597
short-term prize liabilities, that are not credited to lottery	598
sales agents in the form of bonuses, commissions, or	599
reimbursements, and that are not necessary to cover operating	600
expenses associated with those games or to otherwise comply with	601
the agreements signed by the governor that the director enters	602
into under division (J) of section 3770.02 of the Revised Code or	603
the rules the commission adopts under division (B)(5) of section	604
3770.03 of the Revised Code shall be transferred to the state	605
lottery fund. All investment earnings of the fund shall be	606
credited to the fund. Moneys shall be disbursed from the fund	607
pursuant to vouchers approved by the director. Total	608
disbursements for monetary prize awards to holders of winning	609
lottery tickets in connection with the statewide lottery and	610
purchases of goods and services awarded as prizes to holders of	611
winning lottery tickets shall be of an amount equal to at least	612
fifty per cent of the total revenue accruing from the sale of	613
lottery tickets.	614

(B) Pursuant to Section 6 of Article XV, Ohio Constitution,	615
there is hereby established in the state treasury the lottery	616
profits education fund. Whenever, in the judgment of the director	617
of budget and management, the amount to the credit of the state	618
lottery fund that does not represent proceeds from statewide joint	619
lottery games is in excess of that needed to meet the maturing	620
obligations of the commission and as working capital for its	621
further operations, the director shall transfer the excess to the	622
lottery profits education fund in connection with the statewide	623
lottery. In addition, whenever, in the judgment of the director	624
of budget and management, the amount to the credit of the state	625
lottery fund that represents proceeds from statewide joint lottery	626
games equals the entire net proceeds of those games as described	627
in division (B)(5) of section 3770.03 of the Revised Code and the	628
rules adopted under that division, the director shall transfer	629
those proceeds to the lottery profits education fund. There shall	630
also be credited to the fund any repayments of moneys loaned from	631
the educational excellence investment fund. Investment earnings	632
of the lottery profits education fund shall be credited to the	633
fund.	634

The lottery profits education fund shall be used solely for	635
the support of elementary, secondary, vocational, and special	636
education programs as determined in appropriations made by the	637
general assembly, or as provided in applicable bond proceedings	638
for the payment of debt service on obligations issued to pay costs	639
of capital facilities, including those for a system of common	640
schools throughout the state pursuant to section 2n of Article	641
VIII, Ohio Constitution. When determining the availability of	642
money in the lottery profits education fund, the director of	643
budget and management may consider all balances and estimated	644
revenues of the fund.	645

From the amounts that the director of budget and management	646
transfers in any fiscal year from the state lottery fund to the	647
lottery profits education fund, the director shall transfer the	648
initial ten million dollars of those amounts from the lottery	649
profits education fund to the school building program bond service	650
fund created in division (Q) of section 3318.26 of the Revised	651
Code to be pledged for the purpose of paying bond service charges	652
as defined in division (C) of section 3318.21 of the Revised Code	653
on one or more issuances of obligations, which obligations are	654
issued to provide moneys for the school building program	655
assistance fund created in section 3318.25 of the Revised Code.	656

(C) There is hereby established in the state treasury the	657
deferred prizes trust fund. With the approval of the director of	658
budget and management, an amount sufficient to fund annuity prizes	659
shall be transferred from the state lottery fund and credited to	660
the trust fund. The treasurer of state shall credit all earnings	661
arising from investments purchased under this division to the	662
trust fund. Within sixty days after the end of each fiscal year,	663
the director of budget and management shall certify the amount of	664
investment earnings necessary to have been credited to the trust	665
fund during the fiscal year just ending to provide for continued	666
funding of deferred prizes. Any earnings credited in excess of	667
this certified amount shall be transferred to the lottery profits	668
education fund.	669

To provide all or a part of the amounts necessary to fund	670
deferred prizes awarded by the commission in connection with the	671
statewide lottery, the treasurer of state, in consultation with	672
the commission, may invest moneys contained in the deferred prizes	673
trust fund which represents proceeds from the statewide lottery in	674
obligations of the type permitted for the investment of state	675
funds but whose maturities are thirty years or less.	676
Notwithstanding the requirements of any other section of the	677
Revised Code, to provide all or part of the amounts necessary to	678
fund deferred prizes awarded by the commission in connection with	679
statewide joint lottery games, the treasurer of state, in	680
consultation with the commission, may invest moneys in the trust	681
fund which represent proceeds derived from the statewide joint	682
lottery games in accordance with the rules the commission adopts	683
under division (B) (5) of section 3770.03 of the Revised Code.	684
Investments of the trust fund are not subject to the provisions	685
of division (A)(10) of section 135.143 of the Revised Code	686
limiting to twenty-five per cent the amount of the state's total	687
average portfolio that may be invested in debt interests and	688
limiting to one-half of one per cent the amount that may be	689
invested in debt interests of a single issuer.	690

All purchases made under this division shall be effected on a	691
delivery versus payment method and shall be in the custody of the	692
treasurer of state.	693

The treasurer of state may retain an investment advisor, if	694
necessary. The commission shall pay any costs incurred by the	695
treasurer of state in retaining an investment advisor.	696

(D) The auditor of state shall conduct annual audits of all	697
funds and any other audits as the auditor of state or the general	698
assembly considers necessary. The auditor of state may examine	699
all records, files, and other documents of the commission, and	700
records of lottery sales agents that pertain to their activities	701
as agents, for purposes of conducting authorized audits.	702

The state lottery commission shall establish an internal	703
audit program before the beginning of each fiscal year, subject to	704
the approval of the auditor of state. At the end of each fiscal	705
year, the commission shall prepare and submit an annual report to	706
the auditor of state for the auditor of state's review and	707
approval, specifying the internal audit work completed by the end	708
of that fiscal year and reporting on compliance with the annual	709
internal audit program. The form and content of the report shall	710
be prescribed by the auditor of state under division (C) of	711
section 117.20 of the Revised Code.	712

(E) Whenever, in the judgment of the director of budget and	713
management, an amount of net state lottery proceeds is necessary	714
to be applied to the payment of debt service on obligations, all	715
as defined in sections 151.01 and 151.03 of the Revised Code, the	716
director shall transfer that amount directly from the state	717
lottery fund or from the lottery profits education fund to the	718
bond service fund defined in those sections. The provisions of	719
this division are subject to any prior pledges or obligation of	720
those amounts to the payment of bond service charges as defined in	721
division (C) of section 3318.21 of the Revised Code, as referred	722
to in division (B) of this section.	723

Sec. 5739.18.  On the first business day of each week, each	724
county auditor shall make in triplicateduplicate a list showing	725
the names of all vendors licensed in the auditor's county during	726
the preceding week pursuant to sections 5739.01 to 5739.31 of the	727
Revised Code, and such other information as to each, available	728
from the records in the auditor's office, as the tax commissioner	729
prescribes, and shall immediately certify one of suchthe lists to	730
the commissioner, one to the treasurer of state, and one to the	731
county treasurer. The tax commissioner shall keep an alphabetical	732
index of such licensees so certified to the commissioner but may	733
delete therefromfrom the index the names of those persons whose	734
licenses have been cancelled.	735

Section 2. That existing sections 122.011, 135.12, 135.143,	736
135.63, 135.631, 3770.06, and 5739.18 and sections 135.81,	737
135.82, 135.83, 135.84, 135.85, 135.86, 135.87, and 135.88 of the	738
Revised Code are hereby repealed.	739